The extensive vertical and horizontal diversification of hospitals into chains, physician-hospital organizations
, and provider-sponsored HMOs arguably is evidence of free cash flows in a declining industry (inpatient acute care) rather than of efficiency-enhancing pursuit of operating synergies (Robinson 1999; Burns et al.
With the growth of physician-hospital organizations
and the desire of physicians to form their own networks, more attention will need to be paid to the concentration and the potential for anticompetitive behavior and efficiency in vertically integrated market structures and physician-controlled health plans.
In a slow but major change, HMOs are capitating and "passing risk" to more large physician and physician-hospital organizations
, and transferring clinical management responsibility to them (Kerr et al.
The 1996/97 Profile of Physician-Hospital Organizations
and PHO Executives reaffirmed that the PHO is, in essence, a transitional stage to developing an integrated delivery system.
Many physicians and hospitals are now discussing the creation of physician-hospital organizations
(PHOs), entities that would accept capitated bids from HMOs.
* One general internist has devoted his efforts to working with his hospital to develop a physician-hospital organization
Del Negro advises health care providers, including hospitals, health systems, physician-hospital organizations
, and community providers, as well as health care technology firms and other vendors to the health care industry on compliance with data privacy laws and regulations.
"A joint venture or Physician-Hospital Organizations
might have worked 5 years ago, but, it may not be the best model today," she said at the meeting.
At present, it is owned by 16 non-profit hospitals and physician-hospital organizations
QualCare is Piscataway, N.J.-based managed care carrier with 800,000 enrollees in New Jersey's expensive, highly concentrated health insurance market, and the alliance networks affiliate is a provider network organization that has been controlled by an alliance of 16 nonprofit hospitals and physician-hospital organizations
"To our knowledge, there's no other management services organization out there supporting physician-hospital organizations
of multiple healthcare systems,'' Mr.
"We are one of the few highly successful (physician-hospital organizations
) in the country," he said.